SEC accuses ex-pension chiefs of fraud
SACRAMENTO, CALIF. » Federal securities regulators sued a former chief executive and a former director of the California Public Employees’ Retirement System, accusing them of scheming to defraud an investment firm of $20 million.
The Securities and Exchange Commission alleged that former CEO Federico Buenrostro Jr., 62, and former director Alfred J.R. Villalobos, 68, fabricated documents requested by Apollo Global Management, a New York private equity firm.
Apollo had hired Villalobos, a close friend of Buenrostro, as a so-called "placement agent" to secure billions of dollars of investments from the country’s largest public pension fund.
The documents were used by Villalobos and his companies — Arvco Capital Research and Arvco Financial Ventures of Zephyr Cove, Nev. — to bill Apollo for helping to win private equity investment management contracts.
In all, Apollo paid Villalobos more than $48 million from 2005 to 2009. Villalobos received at least $12 million in additional placement fees from other investment funds that managed CalPERS money.
Both Buenrostro and Villalobos have denied wrongdoing.
The allegedly phony documents were patched together to make it look as if the fees had been approved by CalPERS investment staff, the suit alleged.
Hasbro loss tied to severance, weak sales
NEW YORK » Hasbro Inc., weighed down by costs related to staff cuts and weak sales of "My Littlest Pet Shop" miniatures and other toys meant for girls, posted a first-quarter loss Monday.
The results from the maker of Monopoly and Transformers missed Wall Street estimates, and its shares fell $1.88, or 5.2 percent, to close at $34.04 Monday.
The first quarter is typically quiet for toy makers, especially compared with the run-up to the crucial winter holiday shopping season. But first-quarter results do indicate how willing Americans are to spend on nonessential items.
The nation’s two biggest toy makers — Hasbro and its larger rival, Mattel — have posted disappointing first-quarter results.
Pawtucket, R.I.-based Hasbro said it lost $2.6 million, or 2 cents per share, for the period ended April 1. A year ago it reported net income of $17.2 million, or 12 cents a share.
Results were hurt by costs related to staff reductions. In March, Hasbro said it was cutting 170 workers because of the "underperformance" by its U.S. and Canadian divisions, which are under new leadership. That led to $11.1 million in severance costs.
Revenue dropped 3 percent to $648.9 million from $672 million a year ago.
Microsoft sells AOL patents to Facebook
NEW YORK » Microsoft, which just bought patents from AOL for $1 billion, is now turning around and selling most of them to Facebook for $550 million.
Facebook is buying about 650 of the 925 AOL patents and patent applications that Microsoft bought, Microsoft and Facebook said Monday.
Facebook also will get a license to use the rest of the AOL Inc. patents that Microsoft bought. Similarly, Microsoft Corp. will get a license to use the patents Facebook is buying. This part of the arrangement amounts to an agreement between Facebook and Microsoft not to sue each other over any of the AOL patents. The companies are not saying what the patents cover.
Pringles purchase is now key for Kellogg’s
NEW YORK » Kellogg’s lowered forecast for 2012 is raising the stakes on the breakfast food giant’s purchase of Pringles earlier this year.
The Battle Creek, Mich.-based company cited Monday a weaker-than-expected first quarter in slashing its forecast for the full year. The move sent the company’s shares down $2.98, or about 5 percent, to $51.01.
Kellogg Co. gets most of its revenue from North America, where growth in the packaged food industry has been relatively weak. But in February the company announced that it would pay $2.7 billion to buy Pringles potato snacks from Procter & Gamble.
The deal will strengthen the company’s footprint overseas; Pringles are sold in more than 140 countries, and the brand gets two-thirds of its revenue from abroad.
Intel to debut first chips of new generation
NEW YORK » Intel Corp. said Monday that PCs with chips from its new generation of processors, featuring a revolutionary design, will be available this week.
The new generation, code-named "Ivy Bridge," is the first to be made with a 3-D structure. Miniature fins jut out of the plane of the chip, letting Intel cram more features into the same space. That means the chips can be faster while consuming less power.
Analysts have called it one of the most significant developments in silicon transistor design since the integrated circuit was invented in the 1950s. In terms of manufacturing technology, it puts Intel two to three years ahead of the competition, said Romit Shah at Nomura Securities.
ON THE MOVE
The Hawaii Prince Hotel Waikiki and Golf Club has appointed Kathleen Lee to catering and convention services manager. She joined the hotel in December as a hotel assistant manager. Lee previously served as a catering sales and event manager at Courtyard Hotel in Emeryville, Calif.
KPMG has named Nelson Lau managing partner of its Honolulu office, effective May 1. He joined the company in 1986 and was admitted to the partnership in 2005. Lau has more than 25 years of audit experience.
HawaiiUSA Federal Credit Union has announced the following to the board of directors for a three-year term:
» Maxine Joe has been appointed chairwoman. She began her service to the board of directors in 2002.
» Colleen Umetsu to secretary. She was a teacher for the Department of Education until retiring in 2008.
» Donald Yee to vice chairman. He has been with the board for 13 years.
Other directors include Harold Look, treasurer, and Morris Kimoto, Harlan Kimura, Jean Miyahira, Liberato Viduya Jr. and Albert Yoshii.
